Q1 using graphical analysis describe the effects of the

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Q1. Using graphical analysis, describe the effects of the following events on their respective markets. Concisely describe in words the reason for the adjustment.

a. In the market for SUVs, the price of gasoline increases.
b. In the market for cotton, there is a disease that kills 30% of the sheep population.
c. In the market for new houses, the frame builders union negotiates an hourly wage increase of 10%.

Q2. Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second Lawn is $12, and the cost of mowing the third lawn is $15. His producer surplus on the first three lawns of i is $53. If Ronnie charges all customers the same price for lawn mowing, that price.

Reference no: EM13352467

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